As the year comes to a close, some people are planning their holidays and partying while others are planning a new business venture in 2025; some will have a “New Year’s resolution” to change their life, and one of those may be to start a business in the new year. For some it will be a dream; for others, a reality.

What business to start?
There are two things to consider: what business to start and how much you want to make. So you need to ask yourself, “The business I choose, can it make the amount of money I want to make?” Remember there are only so many hours in a workday: for many it is 8 to 10 hours in a workday. So if you want to make R1000 profit a day, you need to ask yourself if you can make, on average, R100-R125 per hour profit. If it’s half that, divide by two; if it’s double or triple that, multiply by two or three, etc.

Let’s assume you want to make double your costs (a metric many small businesses use), so you need to then ask yourself, Can you make (turnover) R200 to R250 an hour using the metrics above?

Now above all else, what separates the dreamers from those making their business a reality is appending the following to the above question: Can I do it with my current resources? You only have as much money as you have—or can get. We all know the bank won’t lend you money unless you have existing income or assets to put up as collateral—any sources outside of this will see you being sent from pillar to post with your dog-eared “business plan,” as there is virtually no state/taxpayer support for small businesses like in other countries. So you must always be realistic.

What business should you start?
As I just stated, your resources should determine a realistic business to start. Resources and skills. Now let’s assume that you do not have any skills, no marketable skills (maybe you have a useless qualification), you do not want to enter the industry you have skills for, and you do not have the resources to enter the industry your skills are applicable to. Then what?

Then the answer is still “it depends”; it depends on what you can learn within the parameters we discussed. But you need to remember that even if you learn a high-value skill like computer programming, you still need to enter the market at the ground floor, both in skills and clientele. A lot of people are saying these days, “sTaRt A sMmA” (social media marketing agency), but really how many companies out there want this? The fact that most people saying this are the ones selling courses to open an SMMA business tells you all you need to know. And if you know online marketing, you could make money for yourself by affiliate marketing in any case. But back to the topic: what can you start with little to no money or skills that can get traction, break even, and be sustainable in the quickest time? The answer will fall into two common schools of thought: obtain something to sell that there is demand for, either because you are the only one selling it or at that price (the cheapest), or sell something people always need. Generally speaking, the latter comes out on top: food.

Why food and related
A food business is one that almost anyone can start with limited capital and skill. But more importantly, it is one that can be sustainable and grow, providing you get the location right. Let’s be real here: most food, especially fast food places, are not excellent; you are paying for the convenience. If you are selling hot chips, chip rolls, or any other combination of related foods. You just have to not fry the potatoes for too short or too long.

But more importantly, the path is clear: you just need to consistently make something, and if you’re in the right location, you can sell it enough times to make your target profit.

But most importantly, a lot of the equipment is widely available for cheap, or you can borrow it for free. Most people starting out want to start a kota stall, or a chiproll/gatsby shop, or a boerewors roll stand—those pieces of equipment are widely available even in some homes. Below we talk about a smoothie business; you can make enough money from a consumer blender to be able to buy an industrial blender. In fact, I have seen my Phillips “Daily Collection” blender used in smoothie shops at markets.

Let me give you an example:

A blender, some ingredients, and cups, and you have a smoothie business (you can use a consumer blender starting out). Get a space at a gym or somewhere, make R10 profit per smoothie (after deducting rent), sell 100 a day, and you have a R1000-a-day profit business.

Get a fryer, buy potatoes, peel and cut them, have some salt, spices, and sauce available, and you’re in the hot chips/slap chips business.

Buy frozen samoosas, spring rolls, and pies; get a fryer and sell it.

Buy big pies by the dozen, get a warmer and a place to stand, and you’re in the pie business.

Get a donut-making machine, premix, and you can make donuts to sell in business parks. You don’t even need to sell glazed cinnamon; it’s fine.

Buy a candy floss, popcorn, and slush machine; get a place to stand by a toy shop, game shop, and play park, and you’re in business. These are low-cost, high-margin items.

Get a waffle machine, make the batter or buy premix, get cheap ice cream, and you’re in the waffle game. The high-volume, low-cost waffle with a dollop of ice cream and some chocolate sauce business is really popular right now. Make a Tik-Tok video to get the word out.

Get an electric pizza oven or a wood-fired pizza oven and sell margaritas and garlic chitas—two for R100 high volume or lower-volume, more premium gourmet options like smoked meat (you can even buy offcuts to put on as toppings).

Muffins and cupcakes are both cheap to make and can be sold at low margins in bulk or at higher margins each.

All of the above businesses can make R1000 a day starting out—even after paying for the floor space, providing you can get the location right.

The right business model

When starting any food business, you’ll need to decide between focusing on low-cost products or premium, differentiated offerings. Porter’s Generic Strategies (1980) emphasize three main approaches: cost leadership, differentiation, and focus.

In the context of a donut business:

  • Cost Leadership: A simple, low-cost cinnamon donut caters to price-sensitive customers.
  • Differentiation: Offering a variety of glazed options (e.g., icing, chocolate) appeals to customers seeking more choices and willing to pay a bit extra.
  • Focus: Specializing in fluffier, textured, filled donuts (e.g., custard, Nutella, caramel) or those covered in exotic coatings like Oreo crumbs targets a specific niche market, such as those looking for indulgent or unique flavors.

By understanding your target audience and leveraging one of these strategies, you can build a business model that aligns with your resources and goals. You can also take a combination of the two: low cost and different. If you take, for example, Switch energy drinks in South Africa, they are competing with behemoths like Red Bull (very limited range) and Monster (limited). Not only do they compete in the lower end with the mono-flavored Score and Dragon, but they are throwing every single flavor they can think of against the wall to see what sticks. Some people buy new Switch flavors just to try them, despite most tasting like they put vape flavoring in a SodaStream machine.